Efficiency of Poultry Farms in Italy: A Dynamic Analysis During the COVID-19 Pandemic and Avian Influenza

Strategic Insights -

Poultry farming in Italy plays a crucial role in the global poultry market, with production concentrated in a few countries, including Italy. A recent study published in Animals, a journal by MDPI AG, investigated the technical efficiency of Italian poultry farms during the COVID-19 pandemic and avian influenza, which presented significant economic challenges. The researchers used a stochastic frontier model to analyze the panel data and found that certain cost categories, such as feed, water, fuel, and electricity, had a significant impact on production.

Key Takeaways:

  • The study focused on the technical efficiency of Italian poultry farms in 2019-2022, a period marked by the COVID-19 pandemic and avian influenza.
  • The researchers used the RICA database, the Italian section of the EU Farm Accountancy Data Network, to retrieve data for the study.
  • A stochastic frontier model was applied to the panel data to estimate the production frontier and firm-specific inefficiency factors.
  • Results showed that labor, farm area, and farm size were correlated with improved technical efficiency in farms.
  • Certain cost categories, including feed, water, fuel, and electricity, had a positive and significant impact on the value of production.
  • The study also found that current and capital costs had a positive impact on the value of production.

Statistics:

  • The study analyzed data from 2019 to 2022, a period marked by significant economic challenges for poultry farms.
  • The research used the RICA database, which contains information on Italian agricultural farms.
  • The stochastic frontier model was applied to panel data, which included information on 1,543 farms.
  • The study found that labor, farm area, and farm size had a positive impact on technical efficiency in farms, with an increase of 1 labor unit corresponding to an increase in technical efficiency of 2.53%.
  • Current and capital costs accounted for 71.4% of the total costs in poultry farming, highlighting their significant impact on production.

Sources:

  • The Efficiency of Poultry Farms: A Dynamic Analysis Based on a Stochastic Frontier Approach and Panel Data. Animals, 2025, 15(19), 2806.
  • MDPI AG.
  • RICA database, the Italian section of the EU Farm Accountancy Data Network.
  • University of Molise, Department of Economics, via De Sanctis, 86100 Campobasso, Italy.
  • Department of Economics, University of Molise, Faculty of Economics, University of Molise.